The Limits and Challenges of AI.

by Scott Bourquin | Jun 7, 2026 | Blog, The Small Business Minute

Understanding AI Limitations

Can You Depend On AI

A class mate brought up a major challenge in natural language processing (NLP), something that most of us think about as a form of AI.  What it is missing is “sentiment”, which means is misses “sarcasm”.  Ever wonder why some odd posts show up in your feed?  You sarcasm might have been taken as a desired state instead of an undesired state and you added an unintentional bias to the system that is building your feed.

Recognize Patterns

Implement Solutions

AI is making its way into our everyday lives, and not always in a good way.  AI can spread disinformation, reenforce biases and nevermind its insatiable appetite for power.  Because AI lets us do more easily, we text less important information more often filling the world with more noise.

Model building Limitations

The triangle that bounds

Seeking the Mean

Most AI and “Deep Learning Models” are built on nueral networks.  The misson go these networks is to find “The most likely solution” aka in math terms “the mean”.

Game Theory

Game theory programming taught us that a device that only can truly process a zero or one with no other memory seeks to maintain mobility.  It has no “emotional” attachment and isn’t misguided trying to save “property”.  Sacrifing “lives” is acceptable.

Login Construct

Becuase AI needs a “purpose” it is given “goals” and “rules” to achieve those goals.  Since there is no emotional fear or guilt, AI will break rules to improve it’s method of achieving the goal.  Ever been in a lawbreaking “crazy waymo”. I have.

Understanding AI Boundaries

Regardless of the biases input by humans and the data they encounter, some greatness will always be achieved by human creativity because to the bounds of AI inherent to the design and methods used to create manchine learning.

"Google
"Scientific

All neural networks are built on the idea of using data to find the most likely solution. Generally speaking, this is a mathematical mean. Think of it this way, if you ask an AI bot what kind of ice cream you should have chances are high it will give you vanilla because most people can’t make a decision and choose vanilla. Vanilla is the mean even if you don’t like vanilla that will be the answer. The greatest ideas and biggest challenges of man are way outside of the mean.

Game Theory Changes Our View

While watching Sir Demi Hamus discuss how he created deep think, in the game theory that was behind highlights how humans let emotion get in the way of winning. The machine learning systems figured out that mobility was more important than quantity and sacrificing property is an acceptable outcome. For many humans this is an unthinkable outcome.

Logic Construct

Because AI systems are based on neural networks and logic, they need goals and rules. We’ve built systems based on rules ever since the Turing machine and Babbages calculator. Now we are adding goals to test “intelligence”.  The surprising thing to some was that the AI sought the “mean” and ignored rules to improve the performance towards achieveing the goals.

Underlying Limitations

Beyond the three main bounds of AI systems, there are additional constructive limitations due to these bounds many don’t understand until it is too late.  A human can understand senitment and therefore intent.  A maching can not (yet).  You can’t program every single thought a driver has into a machine running an autonomous car.  There is no rule about “don’t run over squirrels” for instance.  Some people do, some avoid them.  AI doesn’t know anything either way until there is a rule or goal governing that event.

Advantages of Bounded AI

The three boundaries and underlying limitations all can be used in favor of business applications. By generating better bounds and a simple rule that if a customer “goes off the reservation” with a completely unrelated question, the AI simply redirect back into the boundaries of its knowledge. If you don’t give it a rule to remain within the boundaries and bring the questions back into the boundaries the potential for hallucination exists.

Explore Your AI Solutions

The Challenge of AI and Social Media

Most of the “best of” websites are owned by one of the brands listed in the top 5 list. Does it make it true?

Why AI Doesn’t Always Get It Right.

AI and the Lack Of Repercussions and Responsibility.

As we discuss terms like guardrails, think of keeping your baby in a crib.  give it too much room to run things go awry.

ChatBot Email Set Up

You Don’t Have AI Agents Yet?

AI uses advanced reasoning to understand intent, resolve complex issues, and execute multi-step workflows. Implementing a web-based chat agent and a voice-activated phone assistant can effectively give a business a 24/7 front desk.

What AI can do for a Small Business

Discover how AI-driven analytics can transform your small business by uncovering hidden opportunities and optimizing performance.Leverage AI to sift through years of transaction data, identifying trends and patterns that can enhance your business strategy.Utilize AI…

Overcoming AI Hallucinations

Are You Ready To AI Enhance Your Business?

AI isn’t a human replacement but rather an enhancement to human performance. Are you ready to see how AI can enhance your business?

Written By Scott Bourquin

Related Posts

AI and Human Student

Why AI Doesn’t Always Get It Right.

As I wrote abount in a previous post, AI provides information based on three basic factors, Game Theory, Drive the Mean and Path of Least Resistance.  Even if you properly set up your prompts, you probably are wondering why you aren’t getting the information you…

read more…

0 Comments